SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934 For the quarter ended March 31, 2001

                                       OR

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
     OF   1934   For   the   transition   period   from    _______________    to
     _________________.

                                                Commission File Number   0-25933


                        SOUTHCOAST FINANCIAL CORPORATION
        (Exact Name of Small Business Issuer as Specified in its Charter)


     South Carolina                                    58-2384011
(State of Incorporation)                 (I.R.S. Employer Identification Number)



               530 Johnnie Dodds Boulevard, Mt. Pleasant, SC 29464
                    (Address of Principal Executive Offices)


                                 (843) 884-0504
                           (Issuer's Telephone Number)


         Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter periods that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.

[X] Yes  [ ] No

         State the number of shares  outstanding of each of the issuer's classes
of common  equity,  as of the latest  practicable  date:  Common  Stock - No Par
Value: 937,563 Shares Outstanding on March 31, 2001.

         Transitional Small Business Disclosure Format (Check one):

[ ] Yes  [X] No











<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  Financial Statements

                        SOUTHCOAST FINANCIAL CORPORATION
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                             (Unaudited)
                                                                                                March 31,               December 31,
                                                                                                 2001                       2000
                                                                                                 ----                       ----
ASSETS
<S>                                                                                        <C>                        <C>
   Cash and due from banks ...................................................             $   4,018,092              $   3,942,566
   Federal funds sold ........................................................                 3,080,000                  1,350,000
   Investment securities available for sale ..................................                 6,247,236                  4,213,773
   Loans, net of allowance of $1,001,758 and $940,758 ........................                83,567,997                 74,434,434
   Property and equipment - net ..............................................                 6,167,072                  6,169,583
   Other assets ..............................................................                 2,274,603                  2,017,975
                                                                                           -------------              -------------
       Total assets ..........................................................             $ 105,355,000              $  92,128,331
                                                                                           =============              =============

LIABILITIES
   Deposits
     Noninterest-bearing .....................................................             $  11,326,754              $   9,240,702
     Interest bearing ........................................................                66,359,987                 56,930,894
                                                                                           -------------              -------------
       Total deposits ........................................................                77,686,741                 66,171,593

   Other borrowings ..........................................................                17,800,000                 16,225,000
Other liabilities ............................................................                   682,774                    579,169
                                                                                           -------------              -------------

       Total liabilities .....................................................                96,169,515                 82,975,765
                                                                                           -------------              -------------
SHAREHOLDERS' EQUITY
   Common stock (no par value; 20,000,000 shares
     authorized; 937,563 shares
     outstanding at March 31, 2001 and
     947,872 at December 31, 2000) ...........................................                 9,571,898                  9,669,155
   Retained deficit ..........................................................                  (399,774)                  (503,796)
   Accumulated other comprehensive income (loss) .............................                    13,361                    (12,793)
                                                                                           -------------              -------------
       Total shareholders' equity ............................................                 9,185,485                  9,152,566
                                                                                           -------------              -------------
       Total liabilities and shareholders' equity ............................             $ 105,355,000              $  92,128,331
                                                                                           =============              =============
</TABLE>









         See notes to consolidated financial statements.




                                       2
<PAGE>


                        SOUTHCOAST FINANCIAL CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                  Three months         Three months
                                                                                                      ended                ended
                                                                                                 March 31,2001        March 31, 2001
                                                                                                 -------------        --------------
INTEREST INCOME
<S>                                                                                                <C>                    <C>
   Loans, including fees .............................................................             $1,962,939             $1,169,769
   Investment securities .............................................................                 95,769                 57,743
   Federal funds sold ................................................................                 29,412                 16,664
                                                                                                   ----------             ----------
       Total interest income .........................................................              2,088,120              1,244,176
INTEREST EXPENSE
   Deposits and borrowings ...........................................................              1,168,797                602,718
                                                                                                   ----------             ----------
       Net interest income ...........................................................                919,323                641,458

PROVISION FOR POSSIBLE LOAN LOSSES ...................................................                 60,000                 30,000
                                                                                                   ----------             ----------
       Net interest income after provision for loan losses ...........................                859,323                611,458
                                                                                                   ----------             ----------

NONINTEREST INCOME
   Service fees on deposit accounts ..................................................                107,217                 42,709
   Fees on loans sold ................................................................                 85,277                 12,109
   Other .............................................................................                 36,881                 33,216
                                                                                                   ----------             ----------
       Total non interest income .....................................................                229,375                 88,034
                                                                                                   ----------             ----------

NONINTEREST EXPENSES
   Salaries and employee benefits ....................................................                558,830                408,107
   Occupancy .........................................................................                 56,026                 31,655
   Furniture and equipment ...........................................................                100,376                 66,753
Advertising and public relations .....................................................                 14,314                 15,194
   Professional fees .................................................................                 38,612                 14,688
Travel and entertainment .............................................................                 52,511                 26,177
   Telephone, postage and supplies ...................................................                 55,265                 42,975
   Other operating ...................................................................                 54,236                 37,659
                                                                                                   ----------             ----------
       Total non-interest expenses ...................................................                930,170                643,208
                                                                                                   ----------             ----------
       Income before income taxes ....................................................                158,528                 56,284
INCOME TAX ...........................................................................                 54,506                 19,137
                                                                                                   ----------             ----------
       Net income ....................................................................             $  104,022             $   37,147
                                                                                                   ==========             ==========
BASIC NET INCOME PER COMMON SHARE ....................................................             $      .10             $      .03
DILUTED NET INCOME  PER COMMON SHARE .................................................             $      .10             $      .03
                                                                                                   ==========             ==========

WEIGHTED AVERAGE SHARES OUTSTANDING
                  Basic ..............................................................              1,036,311              1,152,786
                  Diluted ............................................................              1,063,727              1,154,616
</TABLE>

       See notes to consolidated financial statements.


                                       3
<PAGE>


                        SOUTHCOAST FINANCIAL CORPORATION
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                                         (Unaudited)

<TABLE>
<CAPTION>
                                                                                                        Accumulated          Total
                                                         Common stock                                      other             share-
                                                     ---------------------    Paid-in      Retained    comprehensive        holders'
                                                     Shares         Amount    capital      deficit     income (loss)         equity
                                                     ------         ------    -------      -------     -------------         ------

<S>                                                <C>          <C>             <C>    <C>             <C>             <C>
BALANCE, JANUARY 1, 2000 ....................      1,047,987    $ 10,520,053       -   $   (714,147)   $    (85,108)   $  9,720,798

   Net income ...............................              -               -       -         37,147               -          37,147

   Other comprehensive income, net of tax:
     Unrealized holding losses on
       securities available for sale ........              -               -       -              -         (11,600)        (11,600)
                                                                                                                       ------------


   Comprehensive income .....................              -               -       -              -               -          25,547

                                                ------------    ------------    ----   ------------    ------------    ------------

BALANCE, March 31, 2000 .....................      1,047,987    $ 10,520,053    $  -   $   (677,000)   $    (96,708)   $  9,746,345
                                                ============    ============    ====   ============    ============    ============



BALANCE, JANUARY 1, 2001 ....................        947,872    $  9,669,155       -       (503,796)   $    (12,793)   $  9,152,566

   Net income ...............................              -               -       -        104,022               -         104,022

   Other comprehensive income, net of tax:
     Unrealized holding gains on
       securities available for sale ........              -               -       -              -          26,154          26,154
                                                                                                                       ------------


   Comprehensive income .....................              -               -       -              -               -         130,176

   Repurchase of stock ......................        (11,775)       (109,102)                                              (109,102)
   Employee stock purchase plan .............          1,466          11,845                                                 11,845
                                                ------------    ------------    ----   ------------    ------------    ------------

BALANCE, March 31, 2001 .....................        937,563    $  9,571,898       -    $(399 ,724)    $     13,361    $  9,185,485
                                                ============    ============    ====   ============    ============    ============
</TABLE>





           See notes to consolidated financial statements.



                                       4
<PAGE>

                        SOUTHCOAST FINANCIAL CORPORATION
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                       For the three months ended March 31
                                   (Unaudited)

<TABLE>
<CAPTION>

OPERATING ACTIVITIES                                                                               2001                     2000
                                                                                                   ----                     ----
<S>                                                                                          <C>                       <C>
   Net income ..................................................................             $    104,022              $     37,147
   Adjustments to reconcile net income
     to net Cash provided by operating activities:
     Income tax ................................................................                   54,506                    19,137
     Provision for possible loan losses ........................................                   60,000                    30,000
     Depreciation and amortization .............................................                  105,663                    71,948
     Increase in other assets ..................................................                 (324,608)                 (311,256)
     Increase  in other liabilities ............................................                  103,605                   230,043
         Net cash provided by operating activities .............................                  103,188                    39,872

INVESTING ACTIVITIES
   Increase in federal funds sold ..............................................               (1,730,000)                 (940,000)
   Purchase of investment securities available for sale ........................               (1,998,710)                        -
   Net increase in loans .......................................................               (9,193,563)               (6,232,709)
   Purchase of property and equipment ..........................................                  (98,277)                 (327,040)
                                                                                             ------------              ------------
         Net cash used for investing activities ................................              (13,020,550)               (7,499,749)
                                                                                             ------------              ------------

FINANCING ACTIVITIES
   Increase in Federal Home Loan Bank borrowing ................................                1,575,000                 2,400,000
   Purchase of common stock ....................................................                 (109,102)                        -
   Proceeds from sale of stock, net ............................................                   11,845                         -
   Net increase in deposits ....................................................               11,515,145                 7,640,073
         Net cash provided by financing activities .............................               12,992,888                10,040,073
                                                                                             ------------              ------------

         Increase in cash and due from banks ...................................                   75,526                 2,617,343


CASH AND DUE FROM BANKS, BEGINNING OF PERIOD ...................................                3,942,566                 1,786,411
                                                                                             ------------              ------------

CASH AND DUE FROM BANKS, END OF PERIOD .........................................             $  4,018,092              $  4,403,754
                                                                                             ============              ============
</TABLE>







     See notes to consolidated financial statements.



                                       5
<PAGE>


                        SOUTHCOAST FINANCIAL CORPORATION
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION

         The accompanying  unaudited financial  statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with  the  instructions  to Form  10-QSB  and  item 310 (b) of
Regulation S-B of the Securities and Exchange  Commission.  Accordingly  they do
not  include all  information  and  footnotes  required  by  generally  accepted
accounting principles for complete financial statements. However, in the opinion
of management,  all  adjustments  (consisting of normal  recurring  adjustments)
considered necessary for a fair presentation have been included.

NOTE 2 - ORGANIZATION

         Southcoast  Financial  Corporation  (the "Company") is a South Carolina
corporation  organized  in 1999 for the  purpose of being a holding  company for
Southcoast Community Bank (the "Bank"). On April 29, 1999, pursuant to a Plan of
Exchange approved by the shareholders,  all of the outstanding shares of capital
stock of the Bank were exchanged for shares of common stock of the Company.  The
Company  presently engages in no business other than that of owning the Bank and
has no employees.

NOTE 3 - NET INCOME  PER SHARE

         Net income per share is computed on the basis of the  weighted  average
number of common shares  outstanding  in accordance  with Statement of Financial
Accounting Standards No. 128, "Earnings per Share". The treasury stock method is
used to compute the effect of stock  options on the weighted  average  number of
shares outstanding for diluted earnings per share.

         In March,  2001, the Company  declared a ten- percent stock dividend of
the Company's  common stock. The weighted average number of shares and all other
share data have been  restated  for all periods  presented to reflect this stock
dividend.




                                       6
<PAGE>


ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

         The following  discussion  and analysis  should be read in  conjunction
with the financial  statements and related notes appearing in the Form 10-KSB of
Southcoast  Financial  Corporation.  Results of operations for the period ending
March 31, 2001 are not necessarily  indicative of the results to be attained for
any other period.  Statements  included in Management's  Discussion and Analysis
which are not  historical  in nature  and are  intended  to be,  and are  hereby
identified  as  "forward  looking  statements"  for  purposes of the safe harbor
provided by section 21E of the Securities Exchange Act of 1934, as amended.  The
Company  cautions  readers that forward  looking  statements  including  without
limitation,  those  relating  to the  Company's  new  offices,  future  business
prospects,  revenues, working capital, liquidity, capital needs, interest costs,
and income,  are  subject to certain  risks and  uncertainties  that could cause
actual results to differ from those indicated in the forward looking statements,
due to several  important  factors herein  identified,  among others,  and other
risks and factors  identified  from time to time in the Company's  reports filed
with the Securities and Exchange Commission.

NET INTEREST INCOME

Net interest  income is the difference  between the interest  earned on interest
earning assets and the interest paid for funds acquired to support those assets.
Net  interest  income,  the  principal  source of the  Company's  earnings,  was
$919,323 for the three months ended March 31, 2001, compared to $641,458 for the
three months ended March 31, 2000.

Changes that affect net  interest  income are changes in the average rate earned
on interest earning assets, changes in the average rate paid on interest bearing
liabilities,  and changes in the volume of interest  earning assets and interest
bearing liabilities.

Average  earning assets for the quarter ending March 31,2001  increased to $89.4
million or 71.6 percent from the $52.1 million  reported for the quarter  ending
March  31,2000.  The increase was mainly  attributable  to the increase in loans
supported by a $37.0  million  increase in interest  bearing  liabilities  which
resulted from favorable  economic  conditions in the Charleston market area, the
opening of the bank's third banking  office in the second  quarter of 2000,  and
the Company's marketing efforts.

The following  table  represents  changes in the  Company's net interest  income
which are  primarily  a result of changes  in volume  and rates of its  interest
earning assets and interest  bearing  liabilities.  The increase in net interest
income is due to  increased  volume  of  earning  assets  and  interest  bearing
liabilities  offset by a 45 basis point  decrease in the  Company's net interest
spread.  The net interest spread is the difference  between the yield on earning
assets minus the average rate of interest bearing liabilities.




                                       7
<PAGE>

<TABLE>
<CAPTION>

                                                           Three months ended                          Three months ended
                                                             March 31, 2001                               March 31, 2000
                                                             --------------                               --------------
                                               Average          Income/         Yield/       Average          Income/         Yield/
ASSETS                                         balance          expense          rate        balance         expense           rate
------                                         -------          -------          ----        -------         -------           ----

<S>                                          <C>              <C>                 <C>       <C>            <C>                 <C>
Federal funds sold .......................   $ 2,188,533      $    29,412         5.38%     1,144,157      $    16,664         5.83%
Investments ..............................     5,957,407           95,769         6.43      3,467,473           57,743         6.66
                                             -----------      -----------                   ---------      -----------
Total investments and
   federal funds sold ....................     8,145,940          125,181         6.15      4,611,630           74,407         6.45
Loans ....................................    81,207,761        1,962,939         9.67     47,441,062        1,169,769         9.86
                                             -----------      -----------                   ---------      -----------
Total earning assets .....................    89,353,701        2,088,120         9.35     52,052,692        1,244,176         9.56
                                                              -----------                                  -----------
Other assets .............................     8,579,925                                    6,841,285
                                             -----------                                  -----------
Total assets .............................   $97,933,626                                  $58,893,977
                                             ===========                                  ===========

LIABILITIES
Interest bearing deposits ................   $62,620,362      $   908,940         5.81    $35,967,769      $   407,892         5.54
Other borrowings .........................    17,253,889          259,857         6.02      6,947,208          104,826         6.04
                                             -----------      -----------                   ---------      -----------
Total interest bearing
   liabilities ...........................    79,874,251        1,168,797         5.85     42,914,977          602,718         5.62
Non-interest bearing
   liabilities ...........................     8,949,368                                    6,130,649
                                             -----------      -----------                   ---------      -----------
Total liabilities ........................    88,823,619        1,168,797         5.26     49,045,626          602,718         4.92
Equity ...................................     9,110,007                                    9,848,351
                                             -----------                                  -----------
Total liabilities and
   Equity ................................   $97,933,626                                  $58,893,977
                                             ===========                                  ===========
Net interest income/margin ...............                    $   919,323         4.12                     $   641,458         4.93
                                                              ===========                                  ===========
Net interest spread ......................                                        3.50                                         3.94
</TABLE>

As reflected  above, for the three months ended March 31, 2001 the average yield
on earning assets was 9.35 percent,  while the average cost of  interest-bearing
liabilities  was 5.85  percent.  For the three  months  ended March 31, 2000 the
average  yield on  earning  assets  was 9.56  percent  and the  average  cost of
interest-bearing  liabilities  was 5.62  percent.  The  increase in the yield on
earning assets is attributable to the increased volume of loans,  which give the
Company a  greater  return  than the  other  types of  earning  assets.  The net
interest margin is computed by subtracting interest expense from interest income
and dividing the resulting figure by average  interest-earning  assets.  The net
interest  margin for the three  months  ended  March 31,  2001 was 4.12  percent
compared to 4.93 percent for the three months ended March 31, 2000. The decrease
in the  net-interest  margin is attributable to the increase in interest bearing
liabilities  which  resulted in an increase in the cost of total  liabilities to
support earning assets.  The cost of total  liabilities was 5.26 percent for the
three months ended March 31, 2001  compared to 4.92 percent for the three months
ended March 31, 2000.

The following  table  represents  changes in the  Company's net interest  income
which  are  primarily  a  result  of  changes  in the  volume  and  rates of its
interest-earning assets and interest-bearing liabilities.




                                       8
<PAGE>

                   Analysis of Changes in Net Interest Income
<TABLE>
<CAPTION>
                                                                                     For the three months ended March 31, 2001
                                                                                      versus three months ended March 31, 2000
                                                                                      ----------------------------------------
                                                                                  Volume                Rate              Net change
                                                                                  ------                ----              ----------

<S>                                                                              <C>                  <C>                   <C>
Federal funds sold .................................................             $ 15,013             $ (2,265)             $ 12,748
Investments ........................................................               40,889               (2,863)               38,026
                                                                                 --------             --------              --------
Total investments and federal funds sold ...........................               55,902               (5,128)               50,774
Total loans ........................................................              821,191              (28,021)              793,170
                                                                                 --------             --------              --------
Total earning assets ...............................................              877,093              (33,149)              843,944
Total interest-bearing liabilities .................................              511,963               54,116               566,079
                                                                                 --------             --------              --------
Net interest income ................................................             $365,130             $(87,265)             $277,865
                                                                                 ========             ========              ========
</TABLE>

RESULTS OF OPERATIONS

The  Company's net income for the three months ended March 31, 2001 was $104,022
or $.10 per share,  compared to net income of $37,147 or $.03 per share, for the
three months ended March 31, 2000.

Net interest income has increased to $919,323 for the three  months-ended  March
31,2001  compared to $641,458 for the three months ended March 31, 2000. See net
interest income analysis for the detailed explanation of the increase.

NON-INTEREST INCOME AND EXPENSES

Non-interest  income for the three  months  ended March 31,  2001 was  $229,375,
compared to $88,034 for the three months  ended March 31, 2000.  The increase is
due to the  greater  volume  of loans  sold and the  increase  in the  number of
deposit accounts resulting in increased fees on deposits.

Non-interest  expenses for the three months ended March 31, 2001 were  $930,170,
compared to $643,208 for the three months ended March  31,2000.  The increase of
$286,962 is mainly attributable to increases in salaries and benefits, occupancy
cost,  furniture  and  equipment  expenses and  administrative  expenses.  These
increases  primarily  relate to expenditures  associated with the opening of the
Moncks  Corner  branch  in May  2000,  the  formation  of a sales  staff and the
increase in administrative staff to support the growth.

LIQUIDITY

Liquidity  is the  ability  to  meet  current  and  future  obligations  through
liquidation or maturity of existing  assets or the  acquisition of  liabilities.
The Company manages both assets and liabilities to achieve appropriate levels of
liquidity.  Cash and short-term investments are the Company's primary sources of
asset liquidity.  These funds provide a cushion against short-term  fluctuations
in cash flow from both  deposits  and loans.  The  investment  portfolio  is the
Company's   principal  source  of  secondary  asset  liquidity.   However,   the
availability  of this  source  of  funds is  influenced  by  market  conditions.
Individual  and commercial  deposits and  borrowings  from the Federal Home Loan
Bank are the  Company's  primary  source of funds  for  credit  activities.  The
Company  also has a $3 million  line of credit with The Bankers Bank of Atlanta.
Management  believes that the Company's  liquidity  sources are adequate to meet
its operating needs.


                                       9
<PAGE>


LOANS

Commercial  loans  totaling  $35.0  million made up 41 percent of the total loan
portfolio as of March 31, 2001.  Loans  secured by real estate for  construction
and land development  totaled $0.2 million while all other loans secured by real
estate  totaled  $46.4  million or 55 percent of the total loan  portfolio as of
March  31,  2001.  Installment  loans and other  consumer  loans to  individuals
comprised $3.0 million or 4 percent of the total loan  portfolio.  The allowance
for loan losses was 1.18 percent of loans as of March 31, 2001  compared to 1.25
percent as of December 31, 2000. In management's opinion, the allowance for loan
losses is adequate. At March 31, 2001, the Company had $270,000 of loans 90 days
delinquent and still accruing interest and $161,000 of non-accruing loans.

CAPITAL RESOURCES

The capital base for the Company increased by $32,919 for the first three months
of  2001,  due to  operating  income,  unrealized  gains on  available  for sale
securities and capital raised through the Employee Stock Purchase Plan offset by
$109,102 decrease of capital  reflecting the impact of the Stock Repurchase Plan
approved  in 2000.  In 2000,  the Company  approved  plans to  repurchase  up to
110,000  shares of its  common  stock.  Any  repurchase  will have the effect of
reducing the Company's  equity capital by the amount paid. The Company's  equity
to asset ratio was 9.7 percent as of March 31, 2001  compared to 10.8 percent as
of December 31, 2000.

The Federal Deposit  Insurance  Corporation has established  risk-based  capital
requirements  for banks.  As of March 31, 2001,  the Company's  subsidiary  bank
exceeds the capital requirement levels that are to be maintained as shown in the
table below.

                                 Capital Ratios
<TABLE>
<CAPTION>
                                                                                    Well Capitalized         Adequately Capitalized
                                                               Actual                  Requirement                  Requirement
                                                               ------                  -----------                  -----------
                                                       Amount        Ratio       Amount         Ratio         Amount           Ratio
                                                       ------        -----       ------         -----         ------           -----
<S>                                                   <C>            <C>        <C>             <C>          <C>               <C>
Total capital to risk weighted assets ........        $10,950        15.13%     $ 7,236         10.00%       $ 5,789           8.00%
Tier 1 capital to risk weighted assets .......         10,052        13.89        4,342          6.00          2,895           4.00
Tier 1 capital to average assets .............         10,052        10.26        4,897          5.00          3,917           4.00
</TABLE>

IMPACT OF INFLATION

Unlike  most  industrial  companies,  the assets and  liabilities  of  financial
institutions  such as the Company are primarily  monetary in nature.  Therefore,
interest rates have a more significant impact on the Company's  performance than
do the  effects of changes  in the  general  rate of  inflation  and  changes in
prices.  In  addition,  interest  rates  do not  necessarily  move  in the  same
magnitude  as the  prices  of  goods  and  services.  As  discussed  previously,
management seeks to manage the relationships  between interest  sensitive assets
and  liabilities in order to protect against wide rate  fluctuations,  including
those resulting from inflation.


                                       10
<PAGE>


                           PART II - OTHER INFORMATION




ITEM 4.  Submission of Matters to a Vote of Security Holders.

a)  The Company held its annual meeting of shareholders on March 29, 2001.


c)  Election of Director:

     Nominee:  Robert M. Scott
     Votes for              566.299
     Votes withheld         110




ITEM 6.  Exhibits and Reports on Form 8-K.
-------

a)       Exhibits

     Exhibit No.
     From Item 601 of
     Regulation S-B                               Description
     ----------------------------                 ------------------------------

     None




b)   Reports on form 8-K.      None.








                                       11
<PAGE>

                                   SIGNATURES


In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                 Southcoast Financial Corporation
                                 -----------------------------------------------
                                  Registrant



Date:  May 9, 2001               By:  s/L. Wayne Pearson
                                      ------------------------------------------
                                      L. Wayne Pearson
                                      President and Chief Executive Officer


                                  By: s/Robert M. Scott
                                      ------------------------------------------
                                      Robert M. Scott
                                      Executive Vice President and Chief
                                        Financial Officer

































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